- El Salvador keeps buying Bitcoin despite IMF restrictions on new government purchases in a $3.5 billion deal.
- The country expands Bitcoin reserves while planning tech investments to boost economic growth and innovation.
- The IMF deal requires El Salvador to stop Bitcoin purchases and increase transparency but the government refuses.
El Salvador’s government remains committed to its Bitcoin strategy despite conditions set by the International Monetary Fund (IMF). The IMF included restrictions on further Bitcoin purchases in a $3.5 billion financing deal.
The agreement prohibits the public sector from acquiring more Bitcoin and mandates increased transparency in crypto transactions. However, President Nayib Bukele’s administration has dismissed these measures and continued accumulating Bitcoin.
New Acquisitions Challenge IMF Mandates
Despite the IMF’s restrictions, El Salvador recently added 19 BTC to its reserves, followed by another token the next day. The government has been purchasing one Bitcoin daily since November 2022.
Data shows that the country’s Bitcoin holdings now stand at approximately 6,101 BTC, valued at $530 million. The latest acquisitions indicate that El Salvador intends to maintain its Bitcoin policy despite external pressure.
The IMF agreement also requires the country to publish all government Bitcoin wallet addresses and audit crypto-related government entities. It mandates the liquidation of the Fidebitcoin trust fund by July 2025 and the withdrawal of government involvement from the Chivo Wallet system. Additionally, proposed amendments to the Bitcoin Law will make Bitcoin acceptance voluntary rather than mandatory for businesses.
Economic Growth and Tech Investments
The government of El Salvador continues to invest resources toward technological development and economic growth. The president Bukele met with Ben Horowitz and Marc Andreessen of a16z to explore artificial intelligence investment opportunities.
The El Salvador government is exploring tax incentives and regulatory frameworks to draw technology companies into the nation. These policy initiatives to support the crypto sector reflect the commitment of the United States government.
El Salvador continues strengthening its Bitcoin reserves and seeking economic opportunities despite the IMF’s conditions. The government’s defiance demonstrates its commitment to digital currency and technological advancement. Bitcoin advocates continue to support the country as it positions itself as a key player in the digital currency, alongside its financial and technological progress.
